Title: Notes to the SEFA
Accounting Policies: The schedule of expenditures of federal awards is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in preparation of the general-purpose financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The restricted indirect cost rate for the 2021-2022 fiscal year, as provided by the Division of Federal and Fiscal Compliance and Reporting at the Texas Education Agency (TEA), was 4.076%.
The accompanying schedule of expenditures of federal awards includes the federal grant activity of Texarkana Independent School District (the District) and is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in preparation of the general-purpose financial statements. Federal grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant and accordingly when such funds are received, they are recorded as deferred revenues until earned. The District participates in numerous state and federal grant programs governed by various rules and regulations of grantor agencies. Cost charges to the respective grant programs are subject to audit and adjustment by the grantor agencies; therefore, to the extent that the District has not complied with the rules and regulations governing the grants, if any, refunds of any money received may be required and the collectability of any related receivable at June 30, 2022, may be impaired. In the opinion of the District, there are no significant contingent liabilities relating to the compliance with the rules and regulations governing the respective grants; therefore, no provision has been recorded in the accompanying financial statements for such contingency.
Title: Medicaid Funds
Accounting Policies: The schedule of expenditures of federal awards is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in preparation of the general-purpose financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The restricted indirect cost rate for the 2021-2022 fiscal year, as provided by the Division of Federal and Fiscal Compliance and Reporting at the Texas Education Agency (TEA), was 4.076%.
During the year ending June 30, 2022, the District received Medicaid funds of $871,488 which is not considered a federal award since it is direct cash assistance to individuals.
Title: E-Rate Funding
Accounting Policies: The schedule of expenditures of federal awards is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in preparation of the general-purpose financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The restricted indirect cost rate for the 2021-2022 fiscal year, as provided by the Division of Federal and Fiscal Compliance and Reporting at the Texas Education Agency (TEA), was 4.076%.
During the year ended June 30, 2022, the District received a discount on phone and internet bills in the amount of $127,542 in the general fund. These amounts are reflected as federal revenue in the current year.
Title: Indirect Costs
Accounting Policies: The schedule of expenditures of federal awards is presented on the modified accrual basis of accounting. The information in this schedule is presented in accordance with the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in or used in preparation of the general-purpose financial statements.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate. The restricted indirect cost rate for the 2021-2022 fiscal year, as provided by the Division of Federal and Fiscal Compliance and Reporting at the Texas Education Agency (TEA), was 4.076%.
Indirect costs totaling $1,032,912 are in the General Fund. The restricted indirect cost rate for the 2021-2022 fiscal year, as approved by The Division of Federal and Fiscal Compliance and Reporting at the Texas Education Agency (TEA), was 4.076%. All Federal indirect costs are calculated using this restricted indirect rate with the exception of the indirect cost associated with the ESSER Grant, which is calculated using the direct unrestricted rate of 14.225%.